And Albanian TV reporter Artan Muhaxhiri, who is friends with Xhaka, has revealed a deal is close on Facebook.
Muhaxhiri wrote: “Just confirmed. Granit Xhaka is traveling to London to finalise an agreement with Arsenal FC! Congrats Granit!”
German newspaper Bild claim the Gunners have bid just £19m for the playmaker.
But the Swiss international is reportedly valued at £34m by Monchengladbach.
Despite the haggling over his transfer fee, Xhaka appeared confident that a deal would be struck.
Xhaka said: “The circle has closed. We are now in daily conversations [over a transfer] and there will definitely be a decision before the European Championships.
''Gladbach and Arsenal know that, but I am still a Gladbach player.
"It might change over the next weeks.
''There will definitely be a decision before the European Championship.”
Xhaka joined the Bundesliga outfit for £6.5m in 2012, arriving as a 19-year-old from FC Basel.
He was also understood to be a target for Liverpool, who were previously reported to have held talks over a deal.
